The Scottish Rugby Union have terminated the contract of chief executive Bill Watson.
SRU executive board chairman David Mackay confirmed the move in a statement this morning.
He said: "The urgent need for reform in Scottish rugby is widely recognised. Sadly, but inevitably, the required remedial action will result in changes. The SRU has therefore decided to terminate chief executive Bill Watson's contract with immediate effect.
"The search for a successor who can build upon the strong foundation of the past as well as drive forward all aspects of Scottish rugby has already begun."
Mackay will take over as caretaker chief executive.
Watson played an important role in securing the services of former Leinster boss Matt Williams as Scotland's new head coach.
Williams succeeds Ian McGeechan, who guided Scotland to the quarter-finals of the World Cup in Australia.